HISTORY
NEW GLOBAL CONNECTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It bought more goods than it sold
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It sold more goods than it bought
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All trade would be balanced
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It forced colonists to mine gold and silver
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Detailed explanation-1: -If the exports of a country exceed its imports, the country is said to have a favourable balance of trade, or a trade surplus.
Detailed explanation-2: -If exports exceed imports then the country has a trade surplus and the trade balance is said to be positive. If imports exceed exports, the country or area has a trade deficit and its trade balance is said to be negative.
Detailed explanation-3: -Generally, India had a favorable balance of trade during British rule because Britain held a monopoly over India’s imports and exports. Therefore, most of the foreign trade was restricted only to Britain, while the rest half was allowed to trade with other countries like Ceylon (Sri Lanka), China, and Persia (Iran).
Detailed explanation-4: -The mercantilists identified a nation’s wealth or well-being with its stock of precious metals. Accordingly, a country was encouraged to export more than it imported since the net outflow of goods would be matched by an inflow of gold. To stimulate a trade surplus, mercantilists counseled tariffs and export subsidies.
Detailed explanation-5: -(b) Britain had a trade surplus with India because over the 19th century exports from India to Britain and the rest of the world increased. The value of British exports to India was much higher than the value of British imports from India. Thus, Britain had ‘Trade Surplus’ with India.